Unit trusts hit Sh389b in assets as demand among investors surge 

By , May 15, 2025

Collective Investment Schemes (CIS) saw a 23 per cent jump in the total assets under management from Sh316.4 billion reported as at September 30, 2024, to Sh389.2 billion as at the end of December 2024.  

Capital Markets of Kenya (CMA) Chief Executive Wycklif Shamiah attributed the growth to additional funds registered and the heightened interest in money market funds among investors.  

“The increase is also a result of intensified marketing efforts by the fund managers,” he stated in the market regulator’s Quarterly Statistical Bulletin (QSB).  

A CIS is any scheme or arrangement made or offered by any company under which the contributions, or payments made by the investors, are pooled and utilised with a view to receiving profits, income, produce or property, and is managed on behalf of the investors.  

According to the report, the CIS assets under management have been in a constant growth trajectory over the last eight years, mostly attributed to the new CISs coming into the market and additional funds registered by existing umbrella schemes. 

The CIS industry’s overall assets under management have grown immensely over the years from Sh52.1 billion recorded at the end of 2016 to Sh389.2 billion as of the end of 2024, highlighting the rapid expansion and increasing attractiveness of the unit trust funds in Kenya. 

The growth in the industry can be largely attributed to low investment minimums as most unit trust funds in the market have relatively low initial investment requirements, typically ranging from Sh100 to Sh10,000, promoting financial inclusion, allowing small-scale investors access to investment opportunities. 

Additionally, the adaptation of Fintech has also led to the growth of CIS as digitisation has enhanced ease in cash accessibility, enabling investors to immediately access their investments via mobile payment platforms. 

According to the Central Bank of Kenya, more individuals are transacting through mobile money services as evidenced by the sustained growth in the total number of registered mobile money accounts.  

During the period under review, registered mobile money accounts recorded a 6.7 per cent increase to 82.4 million accounts, from 77.3 million accounts registered in the financial year ’2023. 

Other factors that have influenced the growth of the industry include diversified product offering, competitive returns and efficiency and high liquidity. 

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